U.S. Negotiating More Aid for Bank of America

U.S. Negotiating More Aid for Bank of America

online.wsj.com

The U.S. government is close to committing billions in additional aid to Bank of America Corp. as the nation's largest bank by assets tries to digest its Jan. 1 acquisition of Merrill Lynch & Co., according to people familiar with the situation.

The discussion began in mid-December when Bank of America, already the recipient of $25 billion in federal rescue funds, told the U.S. Treasury Department it was unlikely to complete its purchase of the ailing Wall Street securities firm because of Merrill's larger-than-expected losses in the fourth quarter, according to a person familiar with the talks.

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So the largest financial services company in the world looks to be on tap for yet another government bailout. If you recall, BoA received a $25B capital injection in October courtesy of the American taxpayer via TARP. Apparently that wasn't quite enough.

Between BAC's growing troubles necessitating another bailout and Citigroup's nosedive in recent days, is it any wonder that the second half of the TARP funds were hurredly requested this week?

online.wsj.com
(visit the link for the full news article)

Yeah this is the item of the day -

Bank of America being bailed out SPECIFICALLY for the Merrill Lynch deal. Now lets be CLEAR about this Lewis was asked categorically WHY he was taking over the bank before it went down and paying above the market rates for it ?

Every man and his dog thought it was moronic - and they were absolutely right so too was Fido (the dog). So now it appears that this incompetence is to be rewarded - think I might go and buy a bank, if i cant pay its ok as the TAX PAYER WILL ??!!

This is the same Bank that supports Mountain Top Lopping as a mining practice (well so long as no more than HALF your coal comes from this method) - one of the most environmentally unsound sources there is - OBAMA - or should that read OOOOHHH-bummer.

Seriously this guy was hailed as the messiah - yet here he is backing israel to the hilt in its destruction of Gaza and supporting a corrupt bank who destroys the environment....so far so good.